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New social care tax could hit London workers and wealthier pensioners

29 July 2026 · in 80 words

New social care tax could hit London workers and wealthier pensioners

A new mandatory levy on income is being considered to fund social care, with workers over 34 potentially paying 1.8% on earnings above £6,240. Wealthier pensioners could also face paying between 10% and 45% of their care costs, depending on their assets. The proposal, from a think tank Andy Burnham advised, would see contributions invested for each working-age group rather than spent immediately.

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